Common use of PURCHASE AND SALE OF THE Clause in Contracts

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section 2.1. Purchase and Sale of the Company Shares 18 Section 2.2. Purchase Price 18 Section 2.3. Purchase Price Adjustments 18 Section 2.4. Closing 20 Section 2.5. Closing Deliveries 21 Section 2.6. Transfer Taxes 23 ARTICLE III. REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND THE COMPANY GROUP 23 Section 3.1. Organization of Seller, the Company and the Company Group 23 Section 3.2. Authorization 23 Section 3.3. Noncontravention 23 Section 3.4. Title to the Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Financial Statements; Indebtedness 25 Section 3.8. Undisclosed Liabilities 26 Section 3.9. Absence of Certain Changes 26 Section 3.10. Tax Matters 26 Section 3.11. Property 27 Section 3.12. Intellectual Property 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Matters. 33 Section 3.21. Labor Matters 34 Section 3.22. Suppliers and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 ARTICLE IV. REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1. Organization 35 i Section 4.2. Authorization 36 Section 4.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 64

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section 2.11 1.1. Purchase and Sale of the Company Shares 18 Section 2.21 1.2. Purchase Price 18 Section 2.3. Purchase Price Adjustments 18 Section 2.41 1.3. Closing 20 Section 2.51 ARTICLE II CONSIDERATION AND MANNER OF PAYMENT 2 2.1. Payments at Closing Deliveries 21 Section 2.62 2.2. Transfer Taxes 23 Earn-Out 2 ARTICLE III. III REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND OF THE COMPANY GROUP 23 Section 7 3.1. Organization of Seller, the Company and the Company Group 23 Section Qualification 8 3.2. Authorization 23 Section Authorization; Enforceability 8 3.3. Noncontravention 23 Section Organizational Documents 8 3.4. Title to the Company Shares 24 Section Capitalization 8 3.5. Company Group 24 Section Subsidiaries 9 3.6. Government Authorizations 25 Section No Violation 10 3.7. Financial Statements; Indebtedness 25 Section No Governmental Consents 10 3.8. Financial Statements 10 3.9. Absence of Undisclosed Liabilities 26 Section 3.911 3.10. Absence of Certain Changes 26 Section 3.10. Tax Matters 26 Section 11 3.11. Taxes 13 3.12. Material Contracts 13 3.13. Real Property 27 Section 3.1215 3.14. Intellectual Property 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 18 3.15. Insurance 31 Section Policies 19 3.16. Litigation 31 Section 19 3.17. Legal Compliance 31 Section with Applicable Laws 20 3.18. Permits 32 Section Regulatory Compliance 20 3.19. Franchise Matters 32 Section Environmental Compliance and Conditions 20 3.20. Employee Benefit Matters. 33 Section Plans; Employees 22 3.21. Labor Matters 34 Section 23 3.22. Suppliers and Distributors 34 Section Affiliate Transactions 24 3.23. Company Group Restaurants 34 Section Books and Records 24 3.24. Related Party Transactions 35 Section Brokers 24 3.25. Brokers’ Fees 35 Powers of Attorney 24 3.26. Product Warranty 24 3.27. Product Liability 25 3.28. Customers and Suppliers 25 3.29. Indebtedness 25 ARTICLE IV. IV REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section OF SELLER 25 4.1. Organization 35 i Section Authorization; Enforceability 26 Page 4.2. Authorization 36 Section Title to Shares 26 4.3. Noncontravention 36 Section Litigation 26 4.4. Government Authorizations 36 Section No Violation 26 4.5. Financial Sources 36 Section Foreign Person 26 4.6. Investment 37 Section 26 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 64Brokers 27

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section 2.1. 1 1.01 Basic Transaction 1 1.02 Purchase and Sale of the Company Shares 18 Section 2.2. Purchase Price 18 Section 2.3. 1 1.03 The Closing 2 1.04 The Closing Transactions 2 1.05 Purchase Price Adjustments 18 Section 2.4. Closing 20 Section 2.5. Closing Deliveries 21 Section 2.6. Transfer Taxes 23 3 1.06 Withholding Rights 5 ARTICLE III. II CONDITIONS TO CLOSING 5 2.01 Conditions to the Purchaser’s Obligations 5 2.02 Conditions to the Seller’s Obligations 7 ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND OF THE COMPANY GROUP 23 Section 3.1. 7 3.01 Organization of Seller, the Company and the Company Group 23 Section 3.2. Authorization 23 Section 3.3. Noncontravention 23 Section 3.4. Title to the Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Corporate Power 8 3.02 Subsidiaries 8 3.03 Authorization; No Breach; Valid and Binding Agreement 8 3.04 Capital Stock 9 3.05 Financial Statements; Indebtedness 25 Section 3.8. Undisclosed Liabilities 26 Section 3.9. Statements 9 3.06 Absence of Certain Changes 26 Section 3.10. Developments 10 3.07 Properties 11 3.08 Tax Matters 26 Section 3.11. Property 27 Section 3.12. 12 3.09 Contracts and Commitments 13 3.10 Intellectual Property 28 Section 3.1315 3.11 Litigation 17 3.12 Consents, etc. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. 17 3.13 Employee Benefit Matters. 33 Section 3.21. Labor Plans 17 3.14 Insurance 19 3.15 Compliance with Laws; Permits 19 3.16 Environmental Compliance and Conditions 22 3.17 Affiliated Transactions 23 3.18 Employees 23 3.19 Customers and Suppliers 24 3.20 Unlawful Payments; Import/Export Matters 34 Section 3.22. Suppliers 24 3.21 Brokerage 24 3.22 Product Warranties 25 3.23 Product Liability 25 3.24 No Other Representations and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 Warranties 25 ARTICLE IV. IV REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1. OF THE PURCHASER 25 4.01 Organization 35 i Section 4.2. and Corporate Power 25 4.02 Authorization 36 Section 4.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. 26 4.03 No Violation 26 Table of Contents (Continued) Page 4.04 Governmental Authorities; Consents 26 4.05 Litigation 26 4.06 Brokerage 26 4.07 Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Representation 26 4.08 Financing 27 4.09 Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 6427

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section ACQUIRED ASSETS 11 2.1. Purchase and Sale of the Company Shares 18 Section Acquired Assets 11 2.2. Purchase Price 18 Section Assumption of Assumed Liabilities by the Purchaser; Retention of Retained Liabilities by the Sellers. 11 2.3. Purchase Price Adjustments 18 Section 11 2.4. Purchase Price Adjustment 12 2.5. WOTC Program Renewal. 13 3. CLOSING 17 3.1. Closing 20 Section 2.517 3.2. Closing Deliveries 17 3.3. Allocation of Purchase Price to Acquired Assets 21 Section 2.63.4. Transfer Taxes 23 ARTICLE IIINon-Assignability of Certain Acquired Assets 21 4. REPRESENTATIONS AND WARRANTIES REGARDING OF THE SELLER AND THE COMPANY GROUP 23 Section 3.1PARTIES 21 4.1. Organization of Seller, the Company and the Company Group 23 Section 3.2Qualification 22 4.2. Authorization 23 Section 3.3Authority; Enforceability 22 4.3. Noncontravention 23 Section 3.44.4. Title to the Company Shares Investments in Other Persons 23 4.5. Capitalization of Sellers 23 4.6. Rights; Warrants or Options; Dividends 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.74.7. Financial Statements; Indebtedness Undisclosed Liabilities; Books and Records 24 4.8. Tangible Personal Property; Sufficiency of Assets 25 Section 3.84.9. Undisclosed Liabilities Real Property. 25 4.10. Insurance 26 Section 3.94.11. Labor Relations 26 4.12. Permits; Compliance With Law 26 4.13. Litigation 27 4.14. Material Agreements 27 4.15. Employee Benefit Plans 28 4.16. Tax Matters 30 4.17. Environmental Matters 31 4.18. Intellectual Property 32 4.19. Brokers 34 4.20. Accounts Receivable 34 4.21. Absence of Certain Changes 26 Section 3.10and Events 34 4.22. Tax Matters 26 Section 3.11Employees; Labor Relations 35 4.23. Property 27 Section 3.12Related Transactions 36 4.24. Intellectual Property 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Securities Law Matters. 33 Section 3.2136 4.25. Labor Matters 34 Section 3.22Customers 37 4.26. Suppliers and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 ARTICLE IVSolvency 37 5. REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1OF THE SHAREHOLDERS 38 5.1. Authority; Authorization 38 5.2. Enforceability 38 5.3. Noncontravention 38 5.4. Title; Absence of Certain Agreements 38 6. REPRESENTATIONS AND WARRANTIES OF PURCHASER AND PARENT 39 6.1. Organization 35 i Section 4.2and Qualification 39 6.2. Authorization 36 Section 4.3Authority; Enforceability 39 6.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. Investment 37 Section 4.739 6.4. Litigation 37 Section 4.839 6.5. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer Brokers 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.156.6. Solvency 39 ARTICLE V. 40 6.7. Validity of Shares 40 7. COVENANTS OF THE SELLERS AND THE SHAREHOLDERS 40 Section 5.17.1. Conduct Assistance in Proceedings 40 7.2. Non-Disparagement; Use of the Company Names 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.77.3. Further Assurances 51 Section 5.840 7.4. Assumption Confidentiality; Public Announcements 41 7.5. Payment of Obligations 51 Section 5.9All Taxes by Sellers 42 7.6. Equity Financing 51 Section 5.10Payment of Other Retained Liabilities 42 7.7. Employee Matters 52 Section 5.11Sellers’ Anthem Health Plans 42 8. Contribution COVENANTS AND AGREEMENTS OF THE PURCHASER AND PARENT 42 8.1. WOTC Recovery Project 42 8.2. Further Assurances 42 8.3. Nondisparagement 43 9. INDEMNIFICATION 43 9.1. Indemnification by the Seller Parties 43 9.2. Indemnification by the Shareholders 43 9.3. Indemnification by Purchaser 43 9.4. Limitations on Indemnification 44 9.5. Indemnification Procedure 45 9.6. Right of Closing Commitment Amount Setoff 46 9.7. Exclusive Remedy 46 10. MISCELLANEOUS 47 10.1. Construction 47 10.2. Cooperation 47 10.3. Successors and Issuance Assigns 47 10.4. Entire Agreement 47 10.5. Counterparts 47 10.6. Headings 47 10.7. Expenses 47 10.8. Notices 48 10.9. Governing Law 49 10.10. Severability 49 10.11. Waiver 49 10.12. No Third Party Beneficiary 49 10.13. Enforcement of Capital Stock Agreement 49 10.14. Appointment of Buyer Parent 57 Section 5.12. Filing Representative of the Buyer Parent Certificate Sellers and Shareholders 50 10.15. Bulk Sales Laws 50 10.16. Nondisclosure Agreement 50 10.17. Survival 50 INDEX OF EXHIBITS Exhibit A Convertible Subordinated Promissory Note Exhibit B WOTC Escrow Agreement Exhibit C Guarantee Exhibit D Subordinated Promissory Note Exhibit E Subordination Agreement Exhibit F Bills of Incorporation 57 Section 5.13. Conduct Sale Exhibit G Assignment and Assumption Agreements Exhibit H IP Assignments Exhibit I Non-Competition Agreement INDEX OF SCHEDULES Schedule 1.1 (a) Assigned Agreements Schedule 1.1 (b) Assumed Liabilities Schedule 1.1 (c) Excluded Assets Schedule 1.1 (d) Enumerated Retained Liabilities Schedule 1.1 (e) Excluded Agreements Schedule 1.1 (f) WOTC Recovery Project Schedule 1.1 (g) CIC Plus Schedule 3.2 (a)(iii) Consents and Approvals Schedule 3.2 (b) Allocation of Cash and Notes Schedule 3.2 (b)(ix) Consents and Approvals of Purchaser and Purchaser Schedule 3.3 Allocation Purchase Price Schedule 4.1 Organization and Qualification Schedule 4.3 (a) Noncontravention Schedule 4.3 (b) Notice from or Consent to Seller or Shareholder Schedule 4.4 Investments in Other Persons Schedule 4.6 Rights; Warrants or Options; Dividends Schedule 4.7 Liabilities Not in the Ordinary Course of Business Schedule 4.8 Permitted Liens Schedule 4.8 (a) Tangible Personal Property; Sufficiency of Buyer Parent Assets Schedule 4.9 Real Property Schedule 4.10 Insurance Policies Schedule 4.11 Labor Relations Schedule 4.12 Permits; Compliance With Law Schedule 4.13 Litigation Schedule 4.14 Material Agreements Schedule 4.15 Employee Benefit Plans Schedule 4.15(a) Schedule 4.15(d) Schedule 4.15(e) Schedule 4.16 Tax Matters Schedule 4.16(a) Tax Matters Schedule 4.17 Environmental Matters Schedule 4.18(a) Intellectual Property Schedule 4.18(c) Intellectual Property Schedule 4.18(d) Intellectual Property Schedule 4.18(e) Intellectual Property Schedule 4.18(f) Intellectual Property Schedule 4.18(g) Intellectual Property Schedule 4.18(h) Intellectual Property Schedule 4.20 Accounts Receivable Schedule 4.21 Absence of Changes and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation Events Schedule 4.22(a) List of Employees 59 Section 5.20Schedule 4.22(b) Schedule 4.23 Related Transactions Schedule 4.25 Top Twenty-Five Customers Schedule 5.3 Noncontravention ASSET PURCHASE AGREEMENT THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made effective as of April 30, 2004, by and among, First Advantage Corporation, a Delaware corporation (“Parent”), CIC Enterprises, LLC, a Delaware limited liability company and wholly-owned subsidiary of Parent (“Purchaser”), CIC Enterprises, Inc., an Indiana corporation (“CIC”), STEPS, Inc., an Indiana corporation (“STEPS”), SFC, Inc., an Indiana corporation (“SFC”) and Xxxxxx, Inc., an Indiana corporation (“Xxxxxx”) (CIC, STEPS, SFC and Xxxxxx are sometimes individually referred to as a “Seller” and collectively as the “Sellers”), and Xxxx X. Xxxxx (“Xx. Santa Xxxxxx Restaurant 60 Section 5.21Xxxxx”), Xxxxxxx X. Xxxxx (“Xx. Role Xxxxx”), The Xxxxxxx Xxxxx 2004 Irrevocable Trust dated January 30, 2004 (“JC Trust”), The Xxxxx Xxxxx 2004 Irrevocable Trust dated January 30, 2004 (“BC Trust”), and The Xxxxx Xxxxx 2004 Irrevocable Trust (“KC Trust”) (each of CounselXx. Xxxxx, Xx. Xxxxx, the JC Trust, BC Trust and KC Trust, a “Shareholder” and together the “Shareholders”; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 64the Shareholders collectively with the Sellers are sometimes referred to as the “Seller Parties” and individually as a “Seller Party”).

PURCHASE AND SALE OF THE. COMPANY SHARES PURCHASED PROPERTY 5 SECTION 2.1 SALE OF BUSINESS. 5 SECTION 2.2 PURCHASED PROPERTY. 5 SECTION 2.3 EXCLUDED PROPERTY 7 SECTION 2.4 TITLE TO REAL PROPERTY AND SURVEY. 8 SECTION 2.5 ASSUMED LIABILITIES. 11 SECTION 2.6 EXCLUDED LIABILITIES. 11 ARTICLE 3 PURCHASE PRICE; PAYMENT OF PURCHASE PRICE; ALLOCATION 11 SECTION 3.1 PURCHASE PRICE AND DEPOSIT. 11 SECTION 3.2 PAYMENT OF PURCHASE PRICE. 12 SECTION 3.3 PRORATIONS. 13 ARTICLE 4 CERTAIN OTHER COVENANTS AND AGREEMENTS 14 SECTION 4.1 INSPECTION AND DUE DILIGENCE. 14 SECTION 4.2 CONDUCT OF BUSINESS PRIOR TO THE CLOSING DATE. 17 SECTION 4.3 NOTIFICATION OF CERTAIN MATTERS. 18 Section 2.1SECTION 4.4 EMPLOYEES. Purchase and Sale of the Company Shares 18 Section 2.2SECTION 4.5 CONFIDENTIALITY. Purchase Price 18 Section 2.319 SECTION 4.6 EXPENSES AND TAXES. Purchase Price Adjustments 18 Section 2.420 SECTION 4.7 WAIVER OF BULK SALES AND INDEMNIFICATION. Closing 20 Section 2.521 SECTION 4.8 EXCLUSIVITY. Closing Deliveries 21 Section 2.6SECTION 4.9 CONSENTS; COOPERATION. Transfer Taxes 23 21 SECTION 4.10 FURTHER ASSURANCES. 22 SECTION 4.11 NON-SOLICITATION OF EMPLOYEES. 22 SECTION 4.12 DELIVERY OF SCHEDULES. 22 ARTICLE III. REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND THE COMPANY GROUP 23 Section 3.1. Organization of Seller, the Company and the Company Group 23 Section 3.2. Authorization 23 Section 3.3. Noncontravention 23 Section 3.4. Title to the Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Financial Statements; Indebtedness 25 Section 3.8. Undisclosed Liabilities 26 Section 3.9. Absence of Certain Changes 26 Section 3.10. Tax Matters 26 Section 3.11. Property 27 Section 3.12. Intellectual Property 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Matters. 33 Section 3.21. Labor Matters 34 Section 3.22. Suppliers and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 ARTICLE IV. REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1. Organization 35 i Section 4.2. Authorization 36 Section 4.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 645 CLOSING 23

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section 2.1. Purchase CONVERTIBLE NOTE 2 1.1 Sale and Sale Issuance of the Company Shares 18 Section 2.2. Purchase Price 18 Section 2.3. Purchase Price Adjustments 18 Section 2.4. Convertible Note 2 1.2 Closing 20 Section 2.5. Closing Deliveries 21 Section 2.6. Transfer Taxes 23 ARTICLE III2 SECTION 2. REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND OF THE COMPANY GROUP 23 Section 3.1. Organization 2 2.1 Organization, Good Standing and Qualification 2 2.2 Authorization 3 2.3 Valid Issuance of Seller, the Company Note Shares and the Company Group 23 Section 3.2. Authorization 23 Section 3.3. Noncontravention 23 Section 3.4. Listing 3 2.4 Capitalization; Indebtedness 4 2.5 SEC Reports and Certain Changes 5 2.6 Financial Statements and Title to the Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Financial Statements; Indebtedness 25 Section 3.8. Undisclosed Liabilities 26 Section 3.9. Absence of Certain Changes 26 Section 3.10. Tax Matters 26 Section 3.11. Property 27 Section 3.12. Assets 6 2.7 Contracts 6 2.8 Compliance and Permits 6 2.9 Compliance with Other Instruments 7 2.10 Governmental Consents 7 2.11 Litigation 8 2.12 Taxes 8 2.13 Intellectual Property 28 Section 3.13. Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Matters. 33 Section 3.21. Labor Matters 34 Section 3.22. Suppliers and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 ARTICLE IV8 2.14 Brokerage 8 SECTION 3. REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1OF KING 9 3.1 Organization, Good Standing and Qualification 9 3.2 Authorization 9 3.3 Governmental Consents 9 3.4 Accredited Investor 9 3.5 Brokerage 10 SECTION 4. Organization 35 i Section 4.2FILINGS AND AUTHORIZATIONS 10 SECTION 5. Authorization 36 Section 4.3CONDITIONS TO OBLIGATION OF EACH PARTY TO EFFECT THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT 10 SECTION 6. Noncontravention 36 Section 4.4CONDITIONS OF KING’S OBLIGATIONS AT THE CLOSING 11 SECTION 7. Government Authorizations 36 Section 4.5CONDITIONS OF THE COMPANY’S OBLIGATIONS AT THE CLOSING 12 SECTION 8. Financial Sources 36 Section 4.6. Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent MISCELLANEOUS 13 8.1 Survival 13 8.2 Assignment; Successors and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS 40 Section 5.1. Conduct of the Company 40 Section 5.2. Access to Information; Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. Public Announcements 45 Section 5.6. Tax Matters 46 Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount Assigns 13 8.3 Governing Law 14 8.4 Counterparts 14 8.5 Titles and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent Subtitles 14 8.6 Notices 14 8.7 Expenses 15 8.8 Publicity 15 8.9 Amendments and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 64Waivers 16

PURCHASE AND SALE OF THE. COMPANY SHARES 18 Section 2.1. 14 2.1 Purchase and Sale and Contribution of Shares at the Company Shares Closing 14 2.2 Adjustments 15 2.3 Net Inventory Value; Payment for Inventory 17 2.4 Closing; Delivery 18 Section 2.2. Purchase Price 18 Section 2.3. Purchase Price Adjustments 18 Section 2.4. 2.5 Deliveries at Closing 20 Section 2.5. Closing Deliveries 21 Section 2.6. 19 2.6 Transfer Taxes 23 21 2.7 Withholding 21 ARTICLE III. 3 REPRESENTATIONS AND WARRANTIES REGARDING SELLER AND THE COMPANY GROUP 22 3.1 Organization 22 3.2 Capitalization 22 3.3 No Subsidiaries 23 Section 3.1. Organization of Seller, the Company and the Company Group 23 Section 3.2. 3.4 Authorization 23 Section 3.3. Noncontravention 3.5 INTENTIONALLY OMITTED 23 Section 3.4. Title to the 3.6 Conflicts; Consents of Third Parties 23 3.7 Litigation 24 3.8 Intellectual Property 24 3.9 Material Company Shares 24 Section 3.5. Company Group 24 Section 3.6. Government Authorizations 25 Section 3.7. Contracts 26 3.10 Certain Transactions 28 3.11 Rights of Registration 28 3.12 Real Property 28 3.13 Tangible Personal Property 30 3.14 Inventory; Sufficiency of Assets 30 3.15 Financial Statements; Indebtedness 25 Section 3.8. No Undisclosed Liabilities 26 Section 3.9. 30 3.16 Absence of Certain Changes 26 Section 3.10. Tax 31 3.17 INTENTIONALLY OMITTED 32 TABLE OF CONTENTS (continued) Page 3.18 Employee Matters 26 Section 3.11. Property 27 Section 3.12. Intellectual Property 28 Section 3.13. 32 3.19 Taxes 35 3.20 Insurance 38 3.21 Compliance with Law and Regulations; Permits 38 3.22 Suppliers 39 3.23 Corporate Documents 39 3.24 Brokers 40 3.25 Environmental Matters 28 Section 3.14. Contracts 29 Section 3.15. Insurance 31 Section 3.16. Litigation 31 Section 3.17. Legal Compliance 31 Section 3.18. Permits 32 Section 3.19. Franchise Matters 32 Section 3.20. Employee Benefit Matters. 33 Section 3.21. Labor Matters 34 Section 3.22. Suppliers and Distributors 34 Section 3.23. Company Group Restaurants 34 Section 3.24. Related Party Transactions 35 Section 3.25. Brokers’ Fees 35 40 3.26 Solvency 40 3.27 No “Bad Actor” Disqualification 40 ARTICLE IV. 4 REPRESENTATIONS AND WARRANTIES REGARDING BUYER GROUP 35 Section 4.1. Organization 35 i Section 4.2. Authorization 36 Section 4.3. Noncontravention 36 Section 4.4. Government Authorizations 36 Section 4.5. Financial Sources 36 Section 4.6. Investment 37 Section 4.7. Litigation 37 Section 4.8. Brokers’ Fees 37 Section 4.9. Information 38 Section 4.10. Sponsor Guaranty 38 Section 4.11. Capital Stock of Buyer 38 Section 4.12. Capital Stock of Buyer Parent 38 Section 4.13. Buyer Parent and Buyer 39 Section 4.14. Valid Issuance of Buyer Parent Common Stock 39 Section 4.15. Solvency 39 ARTICLE V. COVENANTS OF SELLERS 40 Section 5.1. Conduct 4.1 Ownership of the Company 40 Section 5.2. Access to Information4.2 Authorization 41 4.3 Conflicts 41 4.4 Litigation 41 4.5 Brokers 41 4.6 Powers of Attorney 41 4.7 Investment Purpose 41 ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER 42 5.1 Organization 42 5.2 Authorization 42 5.3 No Conflicts; Consents 42 5.4 Investment Intention 42 5.5 Brokers 43 ARTICLE 6 COVENANTS AND OTHER AGREEMENTS 43 6.1 Employees and Employee Benefits 43 6.2 Confidentiality 43 Section 5.3. Reasonable Best Efforts 44 Section 5.4. Regulatory Approvals 45 Section 5.5. 6.3 Non-competition; Non-solicitation 44 6.4 Public Announcements 45 Section 5.6. 6.5 Recreational/Adult Use License 45 TABLE OF CONTENTS (continued) Page 6.6 Further Assurances 46 ARTICLE 7 INTENTIONALLY OMITTED 46 ARTICLE 8 SURVIVAL AND INDEMNIFICATION 46 8.1 Survival 46 8.2 Indemnification by Sellers 46 8.3 Indemnification by Buyer 47 8.4 Third Party Claims 47 8.5 Direct Claims and Claims for Indemnification 49 8.6 Limitations; Reimbursement; Additional Provisions 50 8.7 Tax Treatment 53 8.8 Exclusive Remedies 53 ARTICLE 9 INTENTIONALLY OMITTED 53 ARTICLE 10 MISCELLANEOUS 53 10.1 Tax Matters 46 53 10.2 Successors and Assigns 55 10.3 Governing Law; Venue 55 10.4 Titles and Subtitles 56 10.5 Notices 56 10.6 Expenses 57 10.7 Attorneys’ Fees 57 10.8 Amendments and Waivers 57 10.9 Specific Performance 57 10.10 Severability 58 10.11 Tax Advice 58 10.12 Delays or Omissions 58 10.13 Entire Agreement 58 10.14 Counterparts 58 TABLE OF CONTENTS (continued) Page Exhibits and Schedules Exhibit A – Form of Release Exhibit B – Form of Independent Contractor Agreement Exhibit C – Form of Amended and Restated Lease (Cambridge Location) Exhibit D – Form of Amended and Restated Lease (Georgetown Location) Exhibit E – Form of Note Exhibit F – Form of Security Agreement Exhibit G – Form of Termination Agreement Disclosure Schedule Schedule 1.1 – Sample Closing Net Working Capital Schedule Schedule 2.1(f) – Closing Date Payment Schedule Schedule 2.3 – Inventory; Net Inventory Value STOCK PURCHASE AGREEMENT This STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of November 13, 2018, by and among Healthy Pharms, Inc., a Massachusetts corporation (the “Company”), Xxxx Xxxxxxxx, an individual (“Overgaag”), Xxxxxxxxx Xxxxxxx, an individual (“Xxxxxxx” and, together with Overgaag, “ Sellers” and each a “Seller”), and 4Front Holdings LLC, a Delaware limited liability company (“Buyer”). Capitalized terms used and not otherwise defined in this Agreement have the meanings set forth in Section 5.7. Further Assurances 51 Section 5.8. Assumption of Obligations 51 Section 5.9. Equity Financing 51 Section 5.10. Employee Matters 52 Section 5.11. Contribution of Closing Commitment Amount and Issuance of Capital Stock of Buyer Parent 57 Section 5.12. Filing of the Buyer Parent Certificate of Incorporation 57 Section 5.13. Conduct of Business of Buyer Parent and Buyer 57 Section 5.14. [Intentionally Omitted] 57 Section 5.15. Name of Seller 57 Section 5.16. Name of Seller Parent 58 Section 5.17. Transition for Restaurants in the United Arab Emirates 58 Section 5.18. No Solicitation 59 Section 5.19. Non-Hire and Non-Solicitation of Employees 59 Section 5.20. Santa Xxxxxx Restaurant 60 Section 5.21. Role of Counsel; Waiver of Conflicts Regarding Representation 61 Section 5.22. Tail Policies 61 Section 5.23. Replacement Letters of Credit 61 Section 5.24. Atlanta Support Center Lease 63 Section 5.25. Future Withdrawals 63 Section 5.26. Insurance Cooperation 641.1.